GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
106.47 USD
-0.03 (-0.03%)
106.47 USD
0 (0%)
GVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of GVA get a neutral evaluation. Nothing too spectacular is happening here. GVA is evaluated to be cheap and growing strongly. This does not happen too often! This makes GVA very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
GVA has a Return On Assets (4.40%) which is in line with its industry peers.
With a decent Return On Equity value of 15.79%, GVA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
GVA has a Return On Invested Capital (6.20%) which is comparable to the rest of the industry.
GVA had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 17.30%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GVA (4.31%) is better than 61.82% of its industry peers.
GVA's Profit Margin has improved in the last couple of years.
GVA has a Operating Margin (6.08%) which is comparable to the rest of the industry.
GVA has a Gross Margin (16.39%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
GVA has a worse debt/assets ratio than last year.
2.2 Solvency
GVA has an Altman-Z score of 2.51. This is not the best score and indicates that GVA is in the grey zone with still only limited risk for bankruptcy at the moment.
GVA has a Altman-Z score of 2.51. This is comparable to the rest of the industry: GVA outperforms 47.27% of its industry peers.
The Debt to FCF ratio of GVA is 3.86, which is a good value as it means it would take GVA, 3.86 years of fcf income to pay off all of its debts.
GVA's Debt to FCF ratio of 3.86 is fine compared to the rest of the industry. GVA outperforms 67.27% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that GVA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, GVA is in line with its industry, outperforming 43.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.67
WACC9.23%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, GVA is in line with its industry, outperforming 47.27% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, GVA is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
GVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.70% on average per year.
GVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.43% yearly.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.14, which indicates a rather expensive current valuation of GVA.
Based on the Price/Earnings ratio, GVA is valued cheaper than 87.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, GVA is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.60, which indicates a correct valuation of GVA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 89.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GVA to the average of the S&P500 Index (36.22), we can say GVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
GVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GVA is cheaper than 83.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaply inside the industry as 87.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.41 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GVA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 21.70% in the coming years.
PEG (NY)0.47
PEG (5Y)0.55
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
With a Dividend Yield of 0.49, GVA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y26%
EPS Next 3Y21.7%
106.47
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change3.24%
Ins Owners1.11%
Ins Owner Change-0.65%
Market Cap4.65B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts82.86
Price Target138.21 (29.81%)
Short Float %10.32%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.77%
PT rev (3m)9.27%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-11.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.6 | ||
| P/S | 1.1 | ||
| P/FCF | 13.41 | ||
| P/OCF | 10.05 | ||
| P/B | 4.02 | ||
| P/tB | 7.97 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)5.87
EY5.51%
EPS(NY)6.41
Fwd EY6.02%
FCF(TTM)7.94
FCFY7.45%
OCF(TTM)10.59
OCFY9.95%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.47
PEG (5Y)0.55
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.51 |
F-Score7
WACC9.23%
ROIC/WACC0.67
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 18.14 and the Price/Book (PB) ratio is 4.02.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.